All income earners, including the salaried and the self-employed, will soon have to fork out more tax. The Centre has finally relented on the long-standing demand from states to enhance the ceiling for tax on professions from the current level of Rs 2,500 to Rs 7,500 per year.
The tax on professions, trades, callings and employments, is a tax that the Constitution assigns to state governments/local bodies. Article 276 puts the ceiling on the tax at Rs 2,500.
The Constitution has been amended in the past to raise the tax level to bring it to the present level. Many states have been demanding that the Article should be amended again to hike the tax level to Rs 7,500 a year.
Recent Comments